I can help you set up your business and get established in Saudi Arabia

I have lived and worked in Saudi Arabia for 5 years.

If you need a consultant to help with all aspects of advice about doing business in Saudi Arabia, relocating here, setting up your business operations, what to expect from the people and the country, making the right contacts, then please contact me.

Saudi Arabia is a complex country and starting to do business "cold" can be daunting and frustrating. I can provide you with an inside track that will hopefully make doing business in Saudi profitable faster, more cost effective, and less traumatic.


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Welcome to everyone who is interested in the mystery that is Saudi Arabia

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Friday, 28 May 2010

The most difficult thing about living in Saudi

Every country has its challenges for expats.

In Saudi the greatest challenge is the lack of interesting things to do outside of work.

If you are based in Riyadh there is so little to do outside of work other than visit the malls. Your time is spent working & sleeping.

In Jeddah (on the West Coast) & Dammam/Al Khobar (East Coast) you have the sea where you can fish, walk by, take photos of, or simply sit by and wonder what prompted you to move to Saudi in the 1st place.

So what do I recommend?

  • go to as many Embassy parties /events as possible
  • get cable tv
  • listen to music
  • renew your love of reading
  • surf the net
  • take up photography
  • start a blog
  • get to know your neighbours
  • join expat clubs of ANY sort (just to meet people)
Most important is to mentally set yourself an arbitrary date in the future at which time you will decide whether or not to extend your stay or move to a more "normal" location. I set increments of 2 years. This is important because it means that mentally I am more committed if I know that I have "allowed" myself the opportunity to review my saudi expat status at a defined future point in time.

This country is not an easy one in which expats can live and work. Do not fall into the work & sleep only trap. Try everything you can to meet people. Take up hobbies. And set yourself an exit strategy.

With all this in place you might make it without the need to pop any Xanax.

Tuesday, 25 May 2010

The Art of Negotiation

If you want to do business in Saudi Arabia you must be an expert negotiator.

Saudis come from Bedouin, trading stock. They are awesome negotiators.

Observation 1: they will wear you down with time. They will simply continue to take their time as if they have all the time in the world. They assume you do not and eventually you will crack and give them what they want (usually a discount).

Answer: Play along. There is no way to circumvent this process. Once you crack or show even the slightest desperation you are gone.

Observation 2: everything is negotiable. And it is negotiable up to and including the day the contracts are being signed.

Answer: decide right up front what strategy you are going to adopt. Now that does not mean giving discounts round 1, 2, or even 3. The sooner you give money away the more discount they will demand. Decide what is negotiable and what is not and do not waver. If you are unsure of your strategy they will sense it and you are gone.

Observation 3: all prices are always too high.

Answer: accept the above and be prepared to fight for every cent.

Observation 3: Value added services (which we regard as essential) have no meaning here. They are buying a product. They will pay for the product. They do not want to pay for implementation, consulting, support.

Answer: Build these into your product cost or brush up on your negotiation skills. I would recommend the first.

Observation 4: once you have said it (especially if it works in their favor) it is considered a valid concession and you are expected to stick to your word.

Answer: be frugal with your words. Consider and choose them carefully.

Accept the fact that in most cases your opposite number is a better negotiator than you (and he probably is). Prepare accordingly, have a strategy, and do not try to make things go faster. If you do all of the above you "may" make a small profit.

Tuesday, 11 May 2010

some more thoughts about personal & business communication idiosyncrasies in saudi arabia

The cornerstone for human progress and advancement is communication. It is essential for human society to operate. However communication means different things in different cultures.

In this article I want to share just a few of my ideas about personal & business communication in Saudi Arabia.

Everything about the Middle East is complex to us foreigners, and that is especially true in Saudi Arabia.

Just like the rest of the world Saudi Arabia has eagerly embraced sms, email, Bluetooth and other means of mobile electronic communication. And in a personal environment these are used extensively.

So, within the context of this particular article, please allow me to identify the first complexity: in a business environment there is no differentiation between business and personal communication, where the spoken word is counts for everything. And this spoken word carries most weight when delivered face to face.

A business proposal is meaningless unless it is the end result of long periods of discussion and ongoing and regular verbal agreement. The proposal is simply a reflection of the spoken word. In fact it exists more for our own, Western or Asian, benefit than for the Saudi businessman who will more often than not will do a deal on a handshake. 

Deals, business agreements, are done on trust and verbal agreement - not on the professionalism, look and feel, and size of a proposal. Yes emails are used. Yes phone calls are made (better). But in order to do business and make money in the Kingdom first  requires the gaining of trust.

A senior Saudi executive pointed out to me recently that we Westerners  had literally thousands of years to develop a “modern” culture of business process and interaction.

However before oil was discovered in Saudi 70 years ago the Saudis were essentially traders. They understood extremely well the nature of buying and selling, and they were masters of the art of verbal communication. Written contracts were nonexistent and a man’s word was his bond.

So the “modern” way of doing business has been in place in Saudi Arabia for a little over half a century only.

Another complexity is that Saudis find it difficult to say NO. They will find all sorts of "nice" ways to avoid such a direct "confrontational" position. We Westerners are used to being told no. We want to know where we stand. Tell me yes or no and I can move on or stay. Well, it is not so clear cut in Saudi Arabia.
The successful Westerners in Saudi take time to get to know the people they want to work with and they learn to read between the lines. Rarely is there a straightforward "yes" or "no". Verbal interpretation and an understanding of body language can be as important as the spoken word.

Be patient. Talk to everyone. Ask lots and lots of questions. Regardless of whether you do everything right you may still fail, because you cannot force the issue. Meetings will happen when they happen. Decisions will be made when it is time for them to be made. Agreements (verbal & written) will be broken, changed, amended, and broken again.

Very importantly, if you have something to say then be prepared to back it up with proof. Saudis are not gullible and are cautious by nature. They do not like to be first adopters.
Business entertainment in the West and in Asia is really either a celebration (closure of a deal) or a mini-bribe, although few would rarely acknowledge it as such.

In Saudi Arabia however entertainment between people wishing to do business together is an essential and crucial component of the business deal. It is during this time that trust is built. Most entertainment time though is spent talking over coffee or tea in or outside the office environment. The occasional business dinner goes down well but only because it enable the parties to spend more time getting to know each other.

So let’s raise the complexity bar one more level now. Frustratingly for us foreigners, business meetings (formal or otherwise) in Saudi are often interrupted by people or phone calls. Although we would consider this rude it is par for the course in Saudi Arabia. The concept of courtesy is so strong that it is considered rude to not acknowledge a person interrupting the meeting or calling your host on his mobile, and expecting him to answer. This works both ways of course because it enables you to have more access to, and talk with, the person with whom you wish to conduct your business.

I had to go to Saudi Airlines cargo at Riyadh airport a month or so ago to pick up boxes of cargo my wife had sent from the Philippines before moving here and the experience reminded me of the skills one needs to employ to get things done in Saudi Arabia.

I learned that it was important to be patient, look lost, say thank you to everyone, seek help, ask for advice, look helpless, say thank you to everyone. Knowing some basic Arabic goes a very long way.

Business relationships with women are a very complex issue. It would be fair to say that in cities in the Eastern Province (Dammam, Dhahran, Al Khobar) it is ok for a Western man to meet with a Saudi woman in an open environment. The same would apply to Jeddah in the Western Province. It is most definitely not the case anywhere else except for Riyadh in the Central Region. There it depends on the woman and the “open” environment in which you would meet. Unlike the Eastern and Western Regions it is unwise to meet with a woman for business anywhere other than in an office environment.

Regardless of where the meeting with a Saudi woman takes place shaking hands is only acceptable if instigated by the woman. No other form of touching is acceptable.
It is fair to say that a Saudi man can have a “normal” relationship with a Saudi woman. A non Saudi Muslim has a more complex and rule based relationship with a Saudi woman. A non Muslim Westerner or Asian is not allowed to have a personal relationship with a Saudi woman.

The other issue of note is religion and politics. Unless you know your friend or business contact very well they will be quite hesitant to discuss religion, and, most certainly, politics with you. Religious discussions are slowly becoming more common as Saudis return from their education experience overseas. However politics is very complex and best left alone in any discussions.

Expect your personal interactions with your Saudi male friends to take place outside your home or their own. The home environment is for family interaction. The presence of women at home means that your Saudi “buddies” will want to meet at restaurants, coffee shops, etc.

Almost without exception everyone from middle management level and above speaks relatively good to excellent English. I have found that Saudi women usually have a better command of English than the men.
Saudis love to go out and eat, and usually very late at nite. So expect to spend a lot of time eating & conversing with your hosts late into the nite. The only proviso is that women will usually not be present at these outings. We may not be used to such arrangements but it is their country and we choose freely to live and work there, so is seems fair that we do so under their terms.

Saudi is complex yet not complex. This may sound contradictory but it is complex in the sense that it is very different and difficult to understand however it is not complex because once understood the rules of personal interaction are clearly defined and easy to follow.

Almost without exception I have found Saudi people to be warm, friendly, engaging, curious, hospitable, understanding and accepting of other cultures. Understanding them and adapting your communication style will greatly reward your business and personal encounters.